Cango : Q1 2025 Cango Inc. Earnings Release

Published: 2025-05-15 00:21:04 ET CANG

Published on 05/15/2025 at 00:21

SHANGHAI, May 14, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its unaudited financial results for the first quarter of 2025.

Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, "The first quarter of 2025 marked a new chapter of growth for Cango following our entry into the Bitcoin mining industry in November 2024. Fueled by the strong performance of our mining operations, we generated total revenues of RMB1.1 billion for the quarter. Throughout the quarter, we focused on enhancing our operational efficiency and mined a total of 1,541 Bitcoins, up substantially from 933.8 Bitcoins last quarter. By the end of April, we produced 2,945 Bitcoins from the inception of our Bitcoin mining business."

"Given our strong confidence in the Bitcoin's long-term value appreciation potential, we have adopted a "Mine and Hold" strategy, prioritizing both self-mining and long-term holding. Currently, we operate 32 EH/s of computing power, positioning us among the world's top-tier Bitcoin miners. We expect to add another 18 EH/s by the end of July 2025. Looking ahead, we will continue to consolidate and optimize our existing computing resources to maximize efficiency while actively exploring high-quality M&A opportunities to further scale our operations and deliver long-term value to all stakeholders," concluded Mr. Lin.

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, "We are pleased to report another solid financial performance this quarter, highlighted by total revenue of RMB1.1 billion and a strong balance sheet. We also continued to reduce our credit risk exposure, further bolstering our financial position and flexibility. Supported by this robust foundation, we are well-positioned to expand the Bitcoin mining business and holistically drive the Company's growth."

Total revenues in the first quarter of 2025 were RMB1.1 billion (US$145.2 million), compared with RMB64.4 million in the same period of 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024.

Revenue from the Bitcoin mining business was RMB1.0 billion (US$144.2 million), with a total of 1,541 Bitcoins mined in the first quarter of 2025.

Revenue from automotive trading-related income[1] was RMB7.6 million (US$1.0 million), compared with RMB64.4 million in the same period of 2024.

Total operating costs and expenses in the first quarter of 2025 were RMB1.2 billion (US$166.7 million). These costs were primarily associated with our Bitcoin mining business.

Loss from operations in the first quarter of 2025 was RMB155.5 million (US$21.4 million) compared with income from operations of RMB74.2 million in the same period of 2024.

Net loss in the first quarter of 2025 was RMB207.4 million (US$28.6 million) compared with net income of RMB90.0 million in the same period of 2024. Basic and diluted net loss per American Depositary Share (the "ADS") in the first quarter of 2025 were both RMB2.00 (US$0.28). Each ADS represents two Class A ordinary shares of the Company.

Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million (US$3.8 million) compared with RMB108.4 million in the same period of 2024.

We currently maintain a deployed hashrate of 32 EH, demonstrating our operational resilience. As part of our continued commitment to growth and scaling our capabilities, we are targeting a substantial increase in our hashrate over the coming months. We are on track to grow our deployed hashrate to approximately 50 EH before the end of July. This increase is expected to be driven by the closing of our share-settled acquisition of Bitcoin mining assets, positioning us to strengthen our competitive advantage and increase operational efficiency.

Pursuant to the share repurchase program announced on April 23, 2024, the Company had repurchased 996,640 ADSs with cash in the aggregate amount of approximately US$1.7 million as of April 25, 2025, the day on which the program expired.

The Company's management will hold a conference call on Wednesday, May 14, 2025, at 9:00 P.M. Eastern Time or Thursday, May 15, 2025, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

International: +1-412-902-4272 United States Toll Free: +1-888-346-8982 Mainland China Toll Free: 4001-201-203 Hong Kong, China Toll Free: 800-905-945 Conference ID: Cango Inc.

The replay will be accessible through May 21, 2025, by dialing the following numbers:

International: +1-412-317-0088 United States Toll Free: +1-877-344-7529 Access Code: 8016651

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://http://ir.cangoonline.com.

Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: https://www.cangoonline.com.

The Company defines "M1+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

The Company defines "M3+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

As part of our review of business performance, we present adjusted EBITDA as Non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, and further excludes share-based compensation expenses and other non-operating income and expenses. We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.

While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of its core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Cango's Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Business Outlook" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any

forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Yihe Liu Cango Inc.

Tel: +86 21 3183 5088 ext.5581

Email: [email protected]

Helen Wu

Piacente Financial Communications Tel: +86 10 6508 0677

Email: [email protected]

[1] Revenue from automotive trading related income consists revenues generated from loan facilitation income and other related income, guarantee income, leasing income, after-market services income, automotive trading income and others.

(Audited)

(Unaudited)

RMB

US$

ASSETS:

Current assets:

Cash and cash equivalents

1,289,629,981

2,515,712,358

346,674,433

Restricted cash - current

10,813,746

11,210,722

1,544,879

Short-term investments, net

1,231,171,751

5,188,899

715,049

Accounts receivable, net

22,991,951

15,801,108

2,177,451

Finance lease receivables - current, net

20,685,475

19,332,969

2,664,154

Financing receivables, net

5,685,096

3,722,236

512,938

Short-term contract asset, net

33,719,944

19,860,987

2,736,917

Prepayments and other current assets, net

226,352,004

362,016,043

49,887,145

Receivable for bitcoin collateral, net

617,057,765

1,464,654,137

201,834,737

Total current assets

3,458,107,713

4,417,499,459

608,747,703

Non-current assets:

Restricted cash - non-current

287,425,602

161,939,581

22,315,871

Long-term investment

400,000,000

55,121,474

Mining machines, net

1,772,319,041

1,619,608,093

223,187,963

Property and equipment, net

6,634,509

6,205,894

855,195

Intangible assets, net

47,425,617

47,259,479

6,512,530

Long-term contract asset, net

17,551,040

348,864

48,075

Finance lease receivables - non-current, net

9,309,227

3,648,111

502,723

Operating lease right-of-use assets, net

40,788,977

38,789,517

5,345,338

Other non-current assets, net

329,761,833

359,761,832

49,576,506

Total non-current assets

2,511,215,846

2,637,561,371

363,465,675

TOTAL ASSETS

5,969,323,559

7,055,060,830

972,213,378

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debts

124,584,293

790,393,522

108,919,140

Accrued expenses and other current liabilities

1,348,300,779

1,999,990,186

275,606,016

Deferred guarantee income

11,787,712

7,974,712

1,098,945

Contingent risk assurance liabilities

31,190,425

20,979,625

2,891,070

Income tax payable

311,130,341

314,258,152

43,305,931

Short-term lease liabilities

7,912,420

7,639,264

1,052,719

Total current liabilities

1,834,905,970

3,141,235,461

432,873,821

Non-current liabilities:

Deferred tax liability

10,724,133

1,477,825

Long-term operating lease liabilities

37,044,466

35,769,502

4,929,169

Other non-current liabilities

19,118

18,131

2,499

Total non-current liabilities

47,787,717

46,511,766

6,409,493

Total liabilities

1,882,693,687

3,187,747,227

439,283,314

Shareholders' equity

Ordinary shares

199,087

27,434

Treasury shares

(756,517,941)

(754,199,105)

(103,931,416)

Additional paid-in capital

4,725,877,432

4,749,907,787

654,554,796

Accumulated other comprehensive income

152,882,024

114,572,087

15,788,456

Accumulated deficit

(35,810,730)

(243,166,253)

(33,509,206)

Total Cango Inc.'s equity

4,086,629,872

3,867,313,603

532,930,064

Total shareholders' equity

4,086,629,872

3,867,313,603

532,930,064

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

5,969,323,559

7,055,060,830

972,213,378

2024

(Unaudited)

2025

(Unaudited) (Unaudited)

RMB

US$

Revenues

64,422,494

1,053,883,166

145,228,984

Bitcoin mining income

1,046,266,997

144,179,448

Loan facilitation income and other related income

13,821,022

(829,251)

(114,274)

Guarantee income

30,259,581

4,043,650

557,230

Leasing income

4,939,712

2,088,483

287,801

After-market services income

11,637,788

776,803

107,046

Automobile trading income

3,445,040

70,796

9,756

Others

319,351

1,465,688

201,977

Operating cost and expenses:

Cost of revenue

29,058,868

955,091,082

131,615,070

Sales and marketing

3,548,273

415,981

57,324

General and administrative

37,923,531

92,536,718

12,751,901

Research and development

1,098,105

324,991

44,785

Net gain on contingent risk assurance liabilities

(15,018,246)

(5,269,261)

(726,124)

Net recovery on provision for credit losses

(66,339,084)

(28,702,162)

(3,955,264)

Loss from change in fair value of receivable for bitcoin collateral

194,957,999

26,865,931

Total operation cost and expense

(9,728,553)

1,209,355,348

166,653,623

(Loss) income from operations

74,151,047

(155,472,182)

(21,424,639)

Interest income

16,503,965

2,152,469

296,618

Net investment income

10,984,524

Interest expense

(9,517,781)

(1,311,585)

Foreign exchange gain (loss), net

131,689

(818,002)

(112,724)

Other income

832,551

13,609,872

1,875,491

Other expenses

(535,390)

(54,180,931)

(7,466,332)

Net income (loss) before income taxes

102,068,386

(204,226,555)

(28,143,171)

Income tax expense

(12,041,600)

(3,128,968)

(431,183)

Net income (loss)

90,026,786

(207,355,523)

(28,574,354)

Net income (loss) attributable to Cango Inc.'s shareholders

90,026,786

(207,355,523)

(28,574,354)

Earnings (losses) per ADS attributable to ordinary shareholders:

Basic

0.85

(2.00)

(0.28)

Diluted

0.80

(2.00)

(0.28)

Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:

Basic

105,521,018

103,783,087

Diluted

112,786,810

103,783,087

Other comprehensive income (loss), net of tax

Foreign currency translation adjustment

20,894,928

(38,309,937)

(5,279,250)

Total comprehensive income (loss)

110,921,714

(245,665,460)

(33,853,604)

Total comprehensive income (loss) attributable to Cango Inc.'s shareholders

110,921,714

(245,665,460)

(33,853,604)

Net (loss) income

90,026,786

(207,355,523)

(28,574,354)

Add: Interest expense

9,517,781

1,311,585

Add: Income tax expenses

12,041,600

3,128,968

431,183

Add: Depreciation and amortization

927,576

155,503,915

21,429,012

Cost of revenue

154,944,205

21,351,882

General and administrative

879,591

559,710

77,130

Research and development

47,985

Add: Other expenses

535,390

54,180,931

7,466,332

Less: Other income

832,551

13,609,872

1,875,491

Add: Share-based compensation expenses

5,717,422

26,187,822

3,608,778

Cost of revenue

254,391

58,766

8,098

Sales and marketing

1,046,659

339,524

46,788

General and administrative

4,416,372

25,783,442

3,553,053

Research and development

6,090

839

Non-GAAP adjusted EBITDA

108,416,223

27,554,022

3,797,045

Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders

108,416,223

27,554,022

3,797,045

Disclaimer

Cango Inc. published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 04:20 UTC.